Gold Markets Break Resistance for the Week

Gold markets have had an interesting week, as we initially gapped higher based upon Russia/Ukraine fears, pulled back to fill that gap, and then shot above the $1880 level. By doing so, it looks as if we are chipping away at the resistance, but Friday was a little bit of a pullback. This makes sense, because quite frankly we had gotten a bit parabolic on the daily chart. If we can break above the $1920 level, then it is likely that we could go much higher. However, this all comes down to the Russia/Ukraine issue, at least in the short term.

Gold Price Predictions Video 21.02.22

Inflation of course is a longer-term concern, so I think we will probably continue to pay close attention to that as well, so keep that in mind. Gold is a bit of a hedge against inflation, but that does not necessarily mean that we need to go straight up in the air. Once things calm down on the Ukrainian border, that will probably be the end of the surge higher in the short term. However, if over the weekend the Russians do advance, that will almost certainly have the gold market taking off quite rapidly.

All things been equal, this is a market that has been noisy, and I think it will continue to be so. Quite frankly, if you have been buying gold for some time, you have been watching your money do nothing. Yes, it does tend to move quite nicely in times of concern, but as soon as things calm down there will probably be better ways to fight inflation.

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